A name too big or too small: status-quality discrepancy and aspirational pricing

Economic sociologists have long emphasized a positive but loose coupling between status and quality, prompting scholars to rule out quality in the status research. However, limited attention is paid to the implications of their loose coupling per se. We underscore that the loose coupling implies a status-quality discrepancy: some actors’ status positions are over-ranked relative to their quality (status inflation), while others are under-ranked (status deflation). The status-quality discrepancy warrants attention because it can place important constraints on actors’ behavior. Specifically, we maintain that status-inflated actors may avoid unconventional, aspirational behavior to shield themselves from potential scrutiny and loss, whereas status-deflated actors embrace it to seek market recognition. Supporting this, our study of fine wineries in Bordeaux shows that wineries with deflated status engage more in aspirational pricing behavior, while those with inflated status tend to shy away from it. Our emphasis on the status-quality discrepancy makes important contributions to the literature on status and aspirational behavior.